Citadele Bank has issued 13 million euros in financing for the construction of solar energy parks in Latvia. The project is being implemented by Estonian renewable energy producer Evecon alongside Swedish investment manager Niam Infrastructure. The project involves building 11 solar parks with a total capacity of 110 MW, providing a significant investment into the Latvian and Baltic renewable energy sector.
For the first phase of the project, six new solar energy parks with an approximate capacity of 40 MW are already under construction, and these will be completed in March 2025. Construction on the second phase — five additional parks — is anticipated to begin by the end of 2024. Quickly introducing new energy generation is crucial for our energy security as we disconnect from the BRELL electricity system.
“We are pleased to have the opportunity to develop renewable energy in the Baltic region alongside partners who have already proved themselves with successful investments in infrastructure,” says Gatis Lazda, Chairman of the Board at Evecon. “Demand for energy is increasing, and we see that the energy produced by solar parks impacts the overall price of electricity. This is why we see such large potential in Latvia for the development of the solar and wind energy sectors.”
Alongside the solar energy projects, an active search for energy storage options will be undertaken, initially concentrating on a 26 MW storage system which would be connected to the solar equipment. A study is also underway of various retail strategies, including long-term electricity purchase contracts, to increase the value of the energy produced as much as possible.
“Green energy is a priority on a Europe-wide scale, and we see that businesses are actively implementing these projects, bringing the Baltic region closer to an energy-independent future,” explains Vaidas Žagūnis, Chief Corporate Commercial Officer and Member of the Management Board at Citadele Bank. “By investing in sustainable projects, we not only promote economic growth, but also affirm our intention of implementing responsible, environmentally-friendly financial practices which will benefit future generations. Furthermore, investment in the introduction of alternative energy sources supports the European Investment Bank’s guarantee programme for businesses, allowing them to attract co financing at a lower interest rate.”
Since 2020, Evecon Group has completed the construction of solar parks with a capacity of more than 40 MW, and are developing more than 1,100 MW worth of solar parks in Estonia which will be completed in 2025. Some of the solar parks include storage systems to provide solar energy at times when the sun is not shining.